KPMG’s report on “Impact of ESG Disclosure” explains that leading global investors such as BlackRock and Vanguard often use ESG data in analyzing a company’s long-term performance, such as energy consumption data which reflects the costs and risks of a company’s dependence on energy. ESG factors are also included as part of the conditions for issuing investment products such as funds and ETFs, with the belief that businesses which take into account ESG principles constitute reduced investment risks and are able to generate consistent returns as well as benefit society and the environment.
(https://www.setsustainability.com/page/disclosure)